Housing Policy

Regulator Bans Fannie, Freddie From Reducing Principals

The FHFA resists the Obama Administration's attempt to further distort the housing market.

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A federal regulator is standing by its decision to bar Fannie Mae and Freddie Mac from reducing principal for borrowers at risk of foreclosure, resisting pressure from the Obama administration.

The Federal Housing Finance Agency announced the decision Tuesday after months of considering the option.

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